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The sum assured is the amount that the LIC will pay to the nominee if the insured person dies during the policy tenure. The sum assured is chosen by the policyholder at the time of purchase.

Life Insured or assured is the person who is insured. It is for whom the life insurance plan is purchased to cover the risk of untimely death.
The premium is the amount you pay to keep the life insurance plan active and to enjoy life coverage uninterrupted.
The ‘policy term’ is the duration for which the policy provides life insurance coverage to the policy holder.
The Policy Term determines the Premium payment term. The premium payment term may be as long as the policy term or shorter depending on the Plan chosen.
Nominee is the person nominated by the policy holder to whom the proceeds of the life insurance policy like the sum assured and other benefits are paid in case of untimely death of policy holder.
Premium payment towards the Life Insurance Policy can be paid either Monthly, Quarterly, Half-yearly or yearly.
Riders are an additional feature chosen while buying the policy to increase the scope of the life insurance policy. Some of the popular riders chosen are:
Premium Waiver Benefit
Double Accident Benefit
Death benefit is what the insurance company pays to the nominee in case of death of policy holder. Sum assured and death benefit are not the same. Death benefit includes Sum assured + Bonus + Rider benefits. Except in Term insurance where there is no bonus or other guarantees.
Maturity benefit is paid to the policyholder once he survives the policy term. Survival benefit is paid in some policies where it is pre defined, like in Money back plans. Term plans have no such benefits.
LIC usually allows 30 days of grace period to pay the premium from the due date. The policy which has lapsed due to non-payment of premiums can be revived during the revival period.

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